Don’t Get Stuck with the Wrong Bank

Make Your Life Easier by Choosing a Bank That Fits Your Needs

Right from the start, figure out what your needs are for your business. You may have simple needs like obtaining a separate business checking account or you may have something more complex in mind such as opening a line of credit. It’s important when making your list to think about not only your current needs, but also your future needs. Where do you see your business headed in the future? For example, you may see yourself needing to take out a loan in the future for your business. Your best bet is to find a smaller community bank, because they are more likely to give you a loan. In fact, it may surprise you that most small loans for businesses come from community banks. However, you need to develop a relationship with them before applying for a loan.

Hunting for a Bank

With list in hand, it’s time to hunt for a good, reliable bank. When looking for a bank, check and see what they specialize in. Specialties include:

Small business working capital

Equipment loans

Investment help

Look at their websites, ask friends, contact other business owners to get a running list of banks that provide help to small businesses. Speaking of help, do you have a financial advisor? You’ll need one to help you run a successful business. Some banks offer services that help businesses with cash flow management and investments.

Comparing Banks

Make a list of five or more banks that seem to match your business needs. To help you get more information than the website supplies, call up these banks and set up an appointment. This is their big interview. Remember you aren’t doing them a favor. They need to put some work in to get your business. Write down some questions to ask. You want to ask about fee structures, additional services, their ATM network, online banking features and interest rates. Compile all the information and spend some time with it. Don’t run to any bank that promises you the moon. The bank you choose should be considered making an investment. Picking the wrong bank causes more than just headaches down the line. It can hurt your business and contribute to failure. How do you find a bank for your business? Post a comment below: